Why are some countries rich and others poor? What types of countries grow more rapidly? Why do certain societies fail to improve their technologies? This course will introduce students to these major questions and to the theoretical, mathematical, and conceptual tools necessary for answering them. The presentation of the theories will be supplemented with examples of relevant empirical works and policy implications.
Students will get a graduate-level introduction to economic theories, models, and empirical evidence on modern macroeconomics. By the end of the course, students will be able to outline and manipulate several workhorse models, derive and analyze the relevant policy conclusions implied by them, and refer to the available evidence. Moreover, students will be aware of the conceptual and mathematical foundations of modern macroeconomics analysis.
Students will get a graduate-level introduction to economic theories, models, and empirical evidence on modern macroeconomics. By the end of the course, students will be able to outline and manipulate several workhorse models, derive and analyze the relevant policy conclusions implied by them, and refer to the available evidence. Moreover, students will be familiar with the conceptual and mathematical foundations of modern macroeconomics analysis.
The technical prerequisite is the knowledge of the mathematical tools presented in an undergraduate course in Mathematics (i.e. multiple-variable functions, derivatives, static optimization, integrals, matrix algebra) and Probability (i.e. expected values, variances, independent and identically distributed random variables). Students may also find it useful to be familiar with any undergraduate-level book in macroeconomics (e.g. Bernheim e Whinston's “Microeconomics” by McGraw-Hill, Mankiw’s “Macroeconomics” by Worth, or Blanchard’s “Macroeconomics” by Pearson).
The course is given through frontal lessons.
We will attempt to cover the following topics: 1. Growth Facts – we will start with a quick look at some basic facts about economic growth and evidences on cross-country income differences 2. The Solow-Swan Model – we will develop a framework to think about causes and mechanics of the process of economic growth and cross-country income differences 3. Neoclassical Growth Model – we will analyse the Ramsey model, while introducing the mathematical and conceptual foundations of modern macroeconomic analysis (e.g. preferences, transversality conditions, optimal control); 4. Overlapping Generations Models – we will depart from the representative household assumption and introduce a model where different agents arrive over time; we will use this framework to think about e.g. the role of money and social security 5. Endogenous Growth Models – we will talk about the role of human capital in fostering growth and start considering models of endogenous growth, like the AK model and Romer’s model of expanding variety
The main references for this course are: • Romer, P. Advanced Macroeconomics, McGraw Hill. • Barro, R. J., and Sala-i-Martin, X. Economic Growth, MIT Press. • Acemoglu, D. Introduction to Modern Economic Growth, Princeton University Press. (more advanced) Futher material will be indicated by the teacher during the lectures where appropriate.
Ricevimento: Office hours are on Thursday between 11am and noon in my office II.1025. Reservation via e-mail is required.
MAURIZIO CONTI (President)
ALESSANDRO SPIGANTI (President)
ANNA BOTTASSO (President Substitute)
Lectures will be given in the second semester
The exam involves passing a written test based on open-ended questions and/or exercises. At the discretion of the lecturer, there may be some intermedite written tests during the course.
The assessment consists of a single written examination on the full contents covered in the course. At the discretion of the lecturer, extra points may be earned during lectures.
